Saskatchewan regulator seeks comment on selling of incidental insurance products

Saskatchewan’s Financial Services Commission is seeking comment on its proposal to enact a restricted licensing system for the purpose of regulating the selling of incidental insurance products.
Saskatchewan’s insurance regulator is proposing to allow the General and Life Insurance Councils of Saskatchewan to issue restricted licenses, authorizing licensees and/or their employees to act as agents to sell particular insurance products specified in the license.
The restricted licenses would be available to “deposit-taking institutions” such as chartered banks, credit unions and trust companies.
Restricted licenses would also be made available to eligible transportation companies, financing corporations, mortgage brokers and the owners of travel agencies, customs brokerages and freight forwarding businesses.
Auto, marine, recreational, farm implement and construction equipment dealerships would also be eligible for the restricted licenses.
Full details of the restricted licensing proposal are available at http://www.sfsc.gov.sk.ca/financial/ISIconsultation.shtml
The proposal details a number of conditions that must be met for the restricted licensee to sell incidental insurance products.
For example, “every insurer on behalf of which a restricted licensee is transacting insurance must: (a) establish reasonable procedures to ensure that personnel transacting insurance are knowledgeable about the insurance being transacted; and (b) use those procedures.”
When selling the insurance product, a licensee must provide to the buyer a summary of the terms (including the limitations and restrictions) of the insurance offered, a summary of the claims procedures and written documentation proving the insurance is in place.
The comment period on the proposal ends on Aug. 21.